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Credit Card History?
So my parents have decided to get me a credit card and contact lenses as soon as I become "responsible". I know which contacts I want...so that's a completely irrelevant piece of informatin, since we all love those. ;). For lots of the credit cards I'm considering, you need good or excellent credi. What if you have no credit? Also, if you have a credit card already, please let me know all the ins and outs about it. Oooh, and if you can think of ways to prove how responsible I am, then please let me know! ßhould I consider a debit card? What's the difference?
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I would reccommend a debit card or a check card if a bank around you offers it. It acts like a credit card, you can use it in all the same places. Only a debit or check card takes money from your bank account instead of borrowing money from a credit card company. The thing is, you're limited by how much money put into your bank account. Your parents might be keener on a debit card than a credit card, since you won't be owing debt to a credit comapny that you (or your parents) would have to pay back with interest.
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One way of showing how responsible you are is be doing some informed research about credit cards and then having a serious discussion with your parents about them.
You will not be able to get a gold or platinum card. Those may seem appealing - and certainly have a lot of benefits - but they will not be available to first time credit card holders. You will simply have to find a card that has low APR - that's the most important thing - and apply for it. The higher the APR, the more interest you will have to pay.
Another option that is fantastic for a younger person is to get a secured credit card. This means that you give the company a set amount of money - say 200 dollars - and then you are given a credit line of 200 dollars. This means that when you are charging things, you're actually spending your own money. When you pay the bill, it goes back towards yourself. It's like borrowing money from you, and this is a good way to build up credit and learn how to be responsible with credit cards.
Any credit card will help you earn points towards good credit, assuming you regularly make payments. If you are late even once, your APR can shoot through the roof.
Credit cards are a dangerous thing in the hands of someone who is not prepared to accept responsibility - and they can be alluring to those who already ARE responsible. Debt is not something to mess around with, so be sure to only charge as much as you can pay off each month.
If you plan to pay the balance off in full, you pay no interest and only pay the purchase price of the item you've got.
Another option to learn how to manage money is a personal checking account. It is more hands on than a credit card and teaches you about account keeping, money responsibility, etc. Debit cards are similar to checks - the money comes directly from your bank account, so there is no monthly statement or anything to pay back.
I'd say doing research on contacts would be helpful too, and think of things from your parents' point of view. They'll want to look at cost, possible impacts on your health, and the amount of work it takes to wear contacts - provide them with this info rather than 'Contacts are so cool!' and you should get them no problem.
Best of luck.
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Thats awesome that you can get contacts. But I honestly think you shouldn't get a credit card....it's funny we just had this discussion in history. He told us if we have one we need to go home and cut it up. If you have a credit card you will spend more than you actually can. Then when you get your bill you won't know what to d and you will have to go to your parents for help. Having a debit card is 100% better, thats what I have....it's a card that has only the money you have thats in your checking account. If you don't have enough to buy what you want on your card it usualy won't let you Hope I helped!
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